SMART METER COMMUNICATION LICENCE

1 Note: Consolidated conditions are not formal Public Register documents and should not be relied on. SMART METER COMMUNICATION LICENCE consolidated to 06 October 2021 DEPARTMENT OF ENERGY AND CLIMATE CHANGE : SMART METER COMMUNICATION LICENCE Gas Act 1986 and Electricity Act 1989 SMART METER COMMUNICATION LICENCE granted pursuant to: sections 7AB(2) and (4) of the Gas Act 1986 AND sections 6(1A) and (1C) of the Electricity Act 1989 Commencement Date : 23 September 2013 20 September 2013 The Company Secretary SMART DCC Ltd 17 Rochester Row London SW1P 1QT GRANT OF THIS LICENCE The Secretary of State, in exercise of the powers conferred by section 7AB(2) of the Gas Act 1986 and section 6(1A) of the Electricity Act 1989, hereby grants this LICENCE (comprising a SMART METER COMMUNICATION LICENCE under the Gas Act 1986 and a SMART METER COMMUNICATION LICENCE under the Electricity Act 1989) to the Licensee (being SMART DCC Ltd, a company registered in England and Wales under number 08641679).

2 This LICENCE will have effect on and after 23 September 2013 in accordance with and subject to the Terms set out in Parts 1 and 2, the Conditions set out in Part 3, and the Schedules set out in Part 4. D W DARON WALKER Director, SMART meters and Fuel Poverty (an official of the Department of Energy & Climate Change authorised to act on behalf of the Secretary of State) Note: Consolidated conditions are not formal Public Register documents and should not be relied on. SMART METER COMMUNICATION LICENCE consolidated to 06 October 2021 DEPARTMENT OF ENERGY AND CLIMATE CHANGE : SMART METER COMMUNICATION LICENCE page 1 of 265 SMART METER COMMUNICATION LICENCE Contents PART 1 : TERMS IN RESPECT OF GRANT pages 2 6 PART 2 : TERMS IN RESPECT OF REVOCATION pages 7 11 PART 3 : CONDITIONS OF THIS LICENCE pages 12 233 PART 4 : SCHEDULES TO THIS LICENCE pages 234 263 Note: Consolidated conditions are not formal Public Register documents and should not be relied on.

3 SMART METER COMMUNICATION LICENCE consolidated to 06 October 2021 DEPARTMENT OF ENERGY AND CLIMATE CHANGE : SMART METER COMMUNICATION LICENCE page 2 of 265 PART 1 OF THIS LICENCE : TERMS IN RESPECT OF GRANT Note: Consolidated conditions are not formal Public Register documents and should not be relied on. SMART METER COMMUNICATION LICENCE consolidated to 06 October 2021 DEPARTMENT OF ENERGY AND CLIMATE CHANGE : SMART METER COMMUNICATION LICENCE page 3 of 265 PART 1 : TERMS IN RESPECT OF GRANT Introduction 1. This SMART METER COMMUNICATION LICENCE ( this LICENCE ) has effect and is to be read and treated as: (a) a LICENCE granted to the Licensee by the Secretary of State in exercise of the powers conferred by section 7AB(2) of the Gas Act 1986 ( the 1986 Act ) (insofar as the activity authorised by this LICENCE relates to the supply of gas under that Act); and (b) a LICENCE granted to the Licensee by the Secretary of State in exercise of the powers conferred by section 6(1A) of the Electricity Act 1989 ( the 1989 Act ) (insofar as the activity authorised by this LICENCE relates to the supply of electricity under that Act).

4 2. By virtue of paragraph 1: (a) any obligation or requirement imposed by or under any provision of this LICENCE has effect as an obligation or requirement imposed by or under each of the licences that is mentioned in that paragraph; and (b) the Licensee s performance of any obligation or its compliance with any requirement so imposed is to be treated as its performance of that obligation or its compliance with that requirement for the purposes of each such LICENCE . Section A: LICENCE duration and Authorised Activity 3. This LICENCE has effect on and after LICENCE Commencement Date and will remain in force until 22 September 2025 ( the LICENCE Term ), subject to paragraphs 6 to 11 of these Terms, the Conditions of this LICENCE as modified from time to time, and the fulfilment of the commitments set out in Schedule 5 (Matters associated with the grant of this LICENCE ). 4. The activity that this LICENCE authorises the Licensee to carry on ( the Authorised Activity ) is the provision within the area of Great Britain, and in accordance with the Conditions of this LICENCE , of a SMART METER COMMUNICATION Service (comprising the activity of arranging with each Domestic Energy Supplier to provide a service, for such suppliers, of communicating information relating to the Supply of Energy under the Principal Energy Legislation to and from SMART meters through which Energy is supplied to Domestic Premises).

5 Section B: Name and address of the Licensee 5. The Licensee (being the person who holds this LICENCE ) is SMART DCC Ltd, a company that is registered in England and Wales under number 08641679, and whose registered office is at 17 Rochester Row, London SW1P 1QT. Note: Consolidated conditions are not formal Public Register documents and should not be relied on. SMART METER COMMUNICATION LICENCE consolidated to 06 October 2021 DEPARTMENT OF ENERGY AND CLIMATE CHANGE : SMART METER COMMUNICATION LICENCE page 4 of 265 Section C: Continuation of this LICENCE 6. The Authority may at any time after 31 March 2018, following consultation with the Licensee and subject to paragraphs 7 to 10 of these Terms, determine that this LICENCE is to continue: (a) on the basis of the Conditions set out in the LICENCE at that time; or (b) on the basis of such other Conditions as the Authority may impose pursuant to paragraph 16 of these Terms, for a maximum further period of six years ( the Additional LICENCE Term ) beginning with the expiry of the LICENCE Term.

6 7. A determination may only be made under paragraph 6 where the Authority is satisfied that the continuation of this LICENCE for an Additional LICENCE Term is necessary or expedient for any of the following purposes: (a) to facilitate an efficient competitive tender process for determining the grant of a Successor LICENCE ; or (b) to facilitate an efficient handover of the Authorised Business of the Licensee to a Successor Licensee; or (c) to secure that such requirements of this LICENCE as relate to the future procurement of Relevant Service Capability are met; or (d) to ensure that energy industry activities (whether considered as a whole or otherwise) can continue to be carried on in an orderly and efficient manner. 8. In paragraph 7(d), energy industry activities refers to all those activities that are authorised to be carried on by licences granted, or treated as granted, under Part 1 of the 1986 Act or Part 1 of the 1989 Act.

7 9. A determination under paragraph 6 is of no effect unless the Authority has given the Licensee at least: (a) six months Notice where the Additional LICENCE Term is a year or less; and (b) one year s Notice where the Additional LICENCE Term is more than a year. 10. The Authority s power under paragraph 6 to determine the continuation of this LICENCE beyond the expiry of the LICENCE Term may be exercised more than once, but: (a) the cumulative total of any periods of continuation so determined may not exceed the maximum duration of the Additional LICENCE Term specified in that paragraph; and (b) except where the Licensee otherwise consents, the Authority may not make more than one determination to continue this LICENCE for a period of more than one year. Section D: Revocation of this LICENCE 11. This LICENCE may be revoked in accordance with any of the provisions of Part 2 of this LICENCE (Terms in Respect of Revocation) that provide for revocation.

8 Note: Consolidated conditions are not formal Public Register documents and should not be relied on. SMART METER COMMUNICATION LICENCE consolidated to 06 October 2021 DEPARTMENT OF ENERGY AND CLIMATE CHANGE : SMART METER COMMUNICATION LICENCE page 5 of 265 Section E: Conditions of this LICENCE 12. A reference to the Conditions of this LICENCE means all of its Conditions, including any Price Control Conditions and any other Condition however described that has effect in this LICENCE . 13. A reference to the Conditions of this LICENCE includes any Schedules to it. Section F: Modification of Conditions 14. The Conditions of this LICENCE may be modified by either of the Secretary of State and the Authority as described in paragraphs 15 and 16 respectively. 15. The Secretary of State may at any time up to and including 31 October 2018, but not after that date, modify any condition of this LICENCE : (a) for any of the purposes set out in section 88 of the Energy Act 2008; and (b) in accordance with the procedures prescribed by section 89 of that Act.

9 16. The Authority (and only the Authority) may at any time modify any condition of this LICENCE : (a) in accordance with the procedures prescribed by sections 23 and 23A of the 1986 Act and sections 11A and 11B of the 1989 Act; or (b) pursuant to any modification procedure that is set out for the purposes of the Authority within that condition by virtue of section 7B(7) of the 1986 Act and section 7(5) of the 1989 Act. 17. Modification of the Conditions of this LICENCE by the Authority may be subject to the Secretary of State s exercise of the power of direction under section 23(5) of the 1986 Act and section 11A(5) of the 1989 Act. Section G: Transfers of this LICENCE 18. This LICENCE is capable of being transferred in whole or in part by the Licensee in accordance with and subject to the provisions of section 8AA of the 1986 Act and section 7A of the 1989 Act. Section H: General interpretation of this LICENCE 19.

10 The Terms and Conditions of this LICENCE are to be read and understood as if they were in an Act of Parliament and the Interpretation Act 1978 applied to them. 20. In this LICENCE , unless the context otherwise requires: (a) any word or expression that is defined in the 1986 Act, the 1989 Act, the Utilities Act 2000, or any of the Energy Acts 2004 to 2013 has the same meaning when used in this LICENCE ; and (b) any reference to an enactment or any other statutory provision is a reference to it as it may have been or may from time to time be amended, replaced, modified, consolidated, or re-enacted. Note: Consolidated conditions are not formal Public Register documents and should not be relied on. SMART METER COMMUNICATION LICENCE consolidated to 06 October 2021 DEPARTMENT OF ENERGY AND CLIMATE CHANGE : SMART METER COMMUNICATION LICENCE page 6 of 265 Section I: Interpretation of these Terms 21. Words and expressions used in this Part 1 that are defined terms for the purposes of any of the Conditions of this LICENCE have, for the purposes of this Part 1, the meaning that is given to them in this LICENCE in the form in which it was in force at LICENCE Commencement Date.